Courtesy of Small caps life7 Aug 2021 20:55
https://smallcapslife.substack.com/
Capital Limited (CAPD.L) - Customer Newsflow
While there has been no direct news, given out previous coverage here, it is worth going over some of the recent customer newsflow.
The following announcement from Cora Gold caused a 33% rise in their share price this week:
49m @ 15.55g/t Au and 32m @ 7.83g/t Au in first Selin P2 drill results
The grades reported over these sort of strikes likely make this a very economic resource. Capital Ltd. undertook most of this drilling:
? 277 holes drilled totalling over 30,923m from the start of the campaign to 31 July 2021.
? The Capital Drilling Deep RC rig has been moved, following completion of the P2 deeper holes at Selin, to target follow-up on the high-grade intercepts reported at Zones A, B1 and C, and as part of the completion of the P2 resource consolidation process.
? The GEODRILL KL600 RC rig will complete the southward progression of the Selin P2 shallow resource consolidation drilling.
? The Capital Diamond Drill ('DD') rig has moved south to complete geotech-metallurgical programmes at Zones A, B and C prospects.
It is unclear if Capital still hold their Cora equity stake since they went below the notifiable threshold last year, and the absolute amount is less than £1m so not particularly material to Capital anyway. What seems certain is that the success here is likely to lead to much more work for Capital in the future.
Centamin produced financial results yesterday, and, as usual, were highly complementary of Capital’s performance as an earthmoving contractor:
A total 2Mt was contributed by Capital Ltd, our waste contract-miner, who also outperformed their budget having mobilised equipment and personnel significantly ahead of schedule and delivering productivity ahead of schedule.
So we knew they performed well, but good to have them continue to be praised by their customer.
Hummingbird Resources also released drilling results. While not as impressive as Cora, these have the advantage of being an extension to a producing mine:
The drill programme has been a success and has showed that mineralisation continues to plunge to the north and is open down dip from these current holes. Drill planning has already commenced for 2022 which will be designed to test for further extension to the high-grade zones below the current level of drilling with a view to add further mineral resources that can be exploited by the future underground operation.
So good results leading to a 2022 drilling campaign - Capital do the delineation drilling at Yanfolila (but perhaps not production drilling IIRC) so this is a good campaign/future revenue visibility for them.
Finally, it is worth noting the continued strength of Predictive Discovery on the back of their recent drilling results:
The Capital 11% stake in PDI hit $20m in value at the peak. So about 10% of the market cap of Capital on its own. Capital, of course, bought in the placing
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